“They’re all good companies, but they are trading at 8.5 times 2011 revenues and at over 100 on a P/E basis,” he explained.
Instead, Davis favors the following firms:
Pegasystems—“Think of them as the UN translator for software,” he explained. “They link together applications that don’t talk to each other—so that saves companies money.”
Constant Contact—“They sell themselves to the small business community,” he said of the firm. “They help you do marketing, email or social media connections and the small and mid-size businesses are seeing a pick up.”
Intuit—“They’re trying to make a big move into India.”
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